Organizational Development

Paper Summary:

In this article, the writer notes that the overall success of an organization is a product of a variety of sources. The writer points out that according to Eric Krell, a writer for the Society for Human Resource Development, one of the greatest of these influences is the perception of senior management by all levels of employees and the subsequent level of trust between them. This paper discusses the correlations between organizational productivity and employee perception of senior management based on Mr. Krell's article. Further, the writer looks at how this relates to trust and organizational performance.

Outline:
Major Thesis
Supporting Arguments
Conclusions

From the Paper:

"There are so many reasons for upper-level management to pay attention and respond to all levels of employee needs. Firstly, it has been shown that the financial bottom line of an organization moves along the same line as the level of trust that employees have in upper management. Secondly, the more trust that employees have in senior management the higher their production and loyalty towards the organization. Thirdly, valuing employee input and empowering all levels of employees shows a great positive outcome for senior managers. Krell's article findings were based on a 2005 Watson Wyatt Wordwide Study."
"Based on that very study, it was reported that organizations that report a high level of trust between employees and top-level management exhibit two times the financial returns than companies who report low levels of trust. Such findings are beneficial to pay attention to in order to improve the organization's performance. In addition, when employees are more self-committed to the organization, companies have reported up to six times the returns than those of low-committed employees."

Sample of Sources Used:

• 1. Krell, Eric (2006) "Do they trust you?" HR Magazine, 51(6). Obtained from the World Wide Web via http://www.shrm.org/hrmagazine/articles/0606/0606cover.asp on October 28, 2006.

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